Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced
earnings results for the first quarter of 2022. Net income for the
first quarter of 2022 was $33.5 million, as compared to $57.9
million for the first quarter of 2021. Basic and diluted earnings
per share (“EPS”) were $0.60 for the first quarter of 2022, as
compared to basic and diluted EPS of $1.03 and $1.02, respectively,
for the first quarter of 2021.
“Our first quarter results were highlighted by
strong loan growth and continued progress in expense management.
The core deposit base continued to grow, and our credit metrics
remain strong,” commented C. Mitchell Waycaster, Renasant President
and Chief Executive Officer. “We continue to focus on growth and
improving profitability and remain committed to maintaining a
strong balance sheet that prioritizes core deposits, capital
strength and credit quality.”
Quarterly Highlights
Earnings
- Net income for the first quarter of
2022 was $33.5 million with diluted EPS of $0.60
- Net interest income (fully tax
equivalent) for the first quarter of 2022 was $101.4 million, a
decrease of $1.9 million from the fourth quarter of 2021
- For the first quarter of 2022, net
interest margin was 2.76%, down 5 basis points on a linked quarter
basis
- Cost of total deposits was 17 basis
points for the first quarter of 2022, down 1 basis point on a
linked quarter basis
- Wealth management and insurance
produced strong results during the first quarter of 2022
- The mortgage division generated
$1.2 billion in interest rate lock volume during the first quarter
of 2022, which is in line with interest rate lock volume production
during the fourth quarter of 2021
- First quarter noninterest expense
decreased by $7.0 million on a linked quarter basis, primarily
driven by the decrease in the debt prepayment penalty of $6.1
million recognized in the fourth quarter of 2021 and a decrease in
data processing due to savings realized from contract
re-negotiations
Balance Sheet
- Loans increased $292.5 million
during the first quarter of 2022 from year-end; excluding loans
acquired during the quarter (as discussed immediately below), loans
increased $264.4 million, which represents 10.70% annualized net
loan growth. The balance of Paycheck Protection Program (“PPP”)
loans was $8.4 million at March 31, 2022
- The Company completed the
acquisition of Southeastern Commercial Finance, LLC, an asset-based
lending company headquartered in Birmingham, Alabama, on March 1,
2022, which added $28.1 million in loans on the date of
acquisition
- The securities portfolio increased
$90.1 million during the first quarter of 2022 from year-end; this
included net additions to the portfolio during the quarter of
$224.9 million and a negative fair market value adjustment in our
available-for-sale portfolio of $134.8 million
- Deposits at March 31, 2022
increased $85.2 million from year-end, and noninterest bearing
deposits represented 33.64% of total deposits at March 31,
2022
Capital
- Book value per share and tangible
book value per share (non-GAAP)(1) decreased 3.5% and 6.4%,
respectively, on a linked quarter basis, driven by a decrease in
accumulated other comprehensive income
- The Company redeemed $30 million of
its subordinated notes on March 1, 2022
- The Company has a $50 million stock
repurchase program that will remain in effect through October 2022;
however, there was no buyback activity during the first quarter of
2022
Credit Quality
- The Company recorded a provision
for credit losses on loans of $1.5 million and a negative provision
for unfunded commitments (recorded in other noninterest expense) of
$550 thousand for the first quarter of 2022
- Allowance for credit losses on
loans to total loans decreased on a linked quarter basis to 1.61%
at March 31, 2022 as compared to 1.64% at December 31, 2021
- The coverage ratio, or the
allowance for credit losses on loans to nonperforming loans, was
318.65% at March 31, 2022 as compared to 323.14% at December 31,
2021
- Net loan charge-offs for the first
quarter of 2022 were $851 thousand, or 0.03% of average loans on an
annualized basis
- Credit metrics remained relatively
stable on a linked quarter basis with nonperforming loans to total
loans remaining at 0.51% and criticized loans (which includes
classified and special mention loans) to total loans decreasing to
2.47% at March 31, 2022
(1)A reconciliation of all non-GAAP financial
measures disclosed in this release from GAAP to non-GAAP is
included in the tables at the end of this release. The information
below under the heading “Non-GAAP Financial Measures” explains why
the Company believes the non-GAAP financial measures in this
release provide useful information and describes the other purposes
for which the Company uses non-GAAP financial measures.
Income Statement
| (Dollars in thousands, except
per share data) |
Three Months Ended |
| |
Mar 31, 2022 |
Dec 31, 2021 |
Sep 30, 2021 |
Jun 30, 2021 |
Mar 31, 2021 |
| Interest
income |
|
|
|
|
|
|
Loans held for investment |
$ |
95,829 |
$ |
98,478 |
|
$ |
102,627 |
|
$ |
109,721 |
$ |
112,006 |
|
Loans held for sale |
|
2,863 |
|
3,652 |
|
|
2,377 |
|
|
3,604 |
|
2,999 |
|
Securities |
|
10,835 |
|
9,221 |
|
|
8,416 |
|
|
7,321 |
|
6,574 |
|
Other |
|
664 |
|
568 |
|
|
593 |
|
|
345 |
|
183 |
| Total interest
income |
|
110,191 |
|
111,919 |
|
|
114,013 |
|
|
120,991 |
|
121,762 |
| Interest
expense |
|
|
|
|
|
|
Deposits |
|
5,637 |
|
6,056 |
|
|
6,972 |
|
|
7,669 |
|
8,279 |
|
Borrowings |
|
4,925 |
|
4,381 |
|
|
3,749 |
|
|
3,743 |
|
3,835 |
| Total interest
expense |
|
10,562 |
|
10,437 |
|
|
10,721 |
|
|
11,412 |
|
12,114 |
| Net interest
income |
|
99,629 |
|
101,482 |
|
|
103,292 |
|
|
109,579 |
|
109,648 |
| Provision for
(recovery of) credit losses |
|
|
|
|
|
|
Provision for (recovery of) loan losses |
|
1,500 |
|
(500 |
) |
|
(1,200 |
) |
|
— |
|
— |
|
Provision for credit losses on HTM securities |
|
— |
|
32 |
|
|
— |
|
|
— |
|
— |
| Total provision for
(recovery of) credit losses |
|
1,500 |
|
(468 |
) |
|
(1,200 |
) |
|
— |
|
— |
| Net interest income
after provision for (recovery of) credit losses |
|
98,129 |
|
101,950 |
|
|
104,492 |
|
|
109,579 |
|
109,648 |
| Noninterest
income |
|
37,458 |
|
47,582 |
|
|
50,755 |
|
|
47,610 |
|
81,037 |
| Noninterest
expense |
|
94,105 |
|
101,115 |
|
|
103,999 |
|
|
108,777 |
|
115,935 |
| Income before income
taxes |
|
41,482 |
|
48,417 |
|
|
51,248 |
|
|
48,412 |
|
74,750 |
| Income
taxes |
|
7,935 |
|
11,363 |
|
|
11,185 |
|
|
7,545 |
|
16,842 |
| Net
income |
$ |
33,547 |
$ |
37,054 |
|
$ |
40,063 |
|
$ |
40,867 |
$ |
57,908 |
| |
|
|
|
|
|
| Adjusted net income
(non-GAAP)(1) |
$ |
33,728 |
$ |
38,232 |
|
$ |
40,315 |
|
$ |
41,169 |
$ |
48,244 |
| Adjusted pre-provision net
revenue (“PPNR”) (non-GAAP)(1) |
$ |
42,664 |
$ |
49,190 |
|
$ |
50,171 |
|
$ |
48,797 |
$ |
62,266 |
| |
|
|
|
|
|
| Basic earnings per share |
$ |
0.60 |
$ |
0.66 |
|
$ |
0.71 |
|
$ |
0.73 |
$ |
1.03 |
| Diluted earnings per
share |
|
0.60 |
|
0.66 |
|
|
0.71 |
|
|
0.72 |
|
1.02 |
| Adjusted diluted earnings per
share (non-GAAP)(1) |
|
0.60 |
|
0.68 |
|
|
0.71 |
|
|
0.73 |
|
0.85 |
| Average basic shares
outstanding |
|
55,809,192 |
|
55,751,487 |
|
|
56,146,285 |
|
|
56,325,717 |
|
56,240,201 |
| Average diluted shares
outstanding |
|
56,081,863 |
|
56,105,050 |
|
|
56,447,184 |
|
|
56,635,898 |
|
56,519,199 |
| Cash dividends per common
share |
$ |
0.22 |
$ |
0.22 |
|
$ |
0.22 |
|
$ |
0.22 |
$ |
0.22 |
(1)A reconciliation of all non-GAAP financial
measures disclosed in this release from GAAP to non-GAAP is
included in the tables at the end of this release. The information
below under the heading “Non-GAAP Financial Measures” explains why
the Company believes the non-GAAP financial measures in this
release provide useful information and describes the other purposes
for which the Company uses non-GAAP financial measures.
Performance Ratios
| |
Three Months Ended |
| |
Mar 31, 2022 |
Dec 31, 2021 |
Sep 30, 2021 |
Jun 30, 2021 |
Mar 31, 2021 |
|
Return on average assets |
0.81 |
% |
0.89 |
% |
0.99 |
% |
1.04 |
% |
1.54 |
% |
| Adjusted return on average
assets (non-GAAP)(1) |
0.82 |
|
0.92 |
|
0.99 |
|
1.04 |
|
1.29 |
|
| Return on average tangible
assets (non-GAAP)(1) |
0.89 |
|
0.98 |
|
1.08 |
|
1.14 |
|
1.69 |
|
| Adjusted return on average
tangible assets (non-GAAP)(1) |
0.90 |
|
1.01 |
|
1.09 |
|
1.14 |
|
1.41 |
|
| Return on average equity |
6.05 |
|
6.59 |
|
7.16 |
|
7.40 |
|
10.81 |
|
| Adjusted return on average
equity (non-GAAP)(1) |
6.08 |
|
6.80 |
|
7.21 |
|
7.46 |
|
9.01 |
|
| Return on average tangible
equity (non-GAAP)(1) |
10.93 |
|
11.94 |
|
13.05 |
|
13.54 |
|
19.93 |
|
| Adjusted return on average
tangible equity (non-GAAP)(1) |
10.99 |
|
12.31 |
|
13.13 |
|
13.64 |
|
16.68 |
|
| Efficiency ratio (fully
taxable equivalent) |
67.78 |
|
67.04 |
|
66.77 |
|
68.49 |
|
60.29 |
|
| Adjusted efficiency ratio
(non-GAAP)(1) |
67.02 |
|
64.18 |
|
66.06 |
|
67.28 |
|
63.85 |
|
| Dividend payout ratio |
36.67 |
|
33.33 |
|
30.99 |
|
30.14 |
|
21.36 |
|
Capital and Balance Sheet Ratios
| |
As of |
| |
Mar 31, 2022 |
Dec 31, 2021 |
Sep 30, 2021 |
Jun 30, 2021 |
Mar 31, 2021 |
|
Shares outstanding |
|
55,880,666 |
|
|
55,756,233 |
|
|
55,747,407 |
|
|
56,350,878 |
|
|
56,294,346 |
|
|
Market value per share |
$ |
33.45 |
|
$ |
37.95 |
|
$ |
36.05 |
|
$ |
40.00 |
|
$ |
41.38 |
|
|
Book value per share |
|
38.25 |
|
|
39.63 |
|
|
39.53 |
|
|
39.11 |
|
|
38.61 |
|
|
Tangible book value per share (non-GAAP)(1) |
|
20.91 |
|
|
22.35 |
|
|
22.22 |
|
|
21.95 |
|
|
21.41 |
|
|
Shareholders' equity to assets |
|
12.68 |
% |
|
13.15 |
% |
|
13.64 |
% |
|
13.75 |
% |
|
13.91 |
% |
|
Tangible common equity ratio (non-GAAP)(1) |
|
7.35 |
|
|
7.86 |
|
|
8.15 |
|
|
8.22 |
|
|
8.23 |
|
|
Leverage ratio |
|
9.00 |
|
|
9.15 |
|
|
9.18 |
|
|
9.30 |
|
|
9.49 |
|
|
Common equity tier 1 capital ratio |
|
10.78 |
|
|
11.18 |
|
|
11.02 |
|
|
11.14 |
|
|
11.05 |
|
|
Tier 1 risk-based capital ratio |
|
11.67 |
|
|
12.10 |
|
|
11.94 |
|
|
12.07 |
|
|
12.00 |
|
|
Total risk-based capital ratio |
|
15.50 |
|
|
16.14 |
|
|
14.66 |
|
|
15.11 |
|
|
15.09 |
|
(1)A reconciliation of all non-GAAP financial
measures disclosed in this release from GAAP to non-GAAP is
included in the tables at the end of this release. The information
below under the heading “Non-GAAP Financial Measures” explains why
the Company believes the non-GAAP financial measures in this
release provide useful information and describes the other purposes
for which the Company uses non-GAAP financial measures.
Noninterest Income and Noninterest Expense
| (Dollars in thousands) |
Three Months Ended |
| |
Mar 31, 2022 |
Dec 31, 2021 |
Sep 30, 2021 |
Jun 30, 2021 |
Mar 31, 2021 |
| Noninterest
income |
|
|
|
|
|
|
Service charges on deposit accounts |
$ |
9,562 |
|
$ |
9,751 |
|
$ |
9,337 |
$ |
9,458 |
$ |
8,023 |
|
Fees and commissions |
|
3,982 |
|
|
3,885 |
|
|
3,837 |
|
4,110 |
|
3,900 |
|
Insurance commissions |
|
2,554 |
|
|
2,353 |
|
|
2,829 |
|
2,422 |
|
2,237 |
|
Wealth management revenue |
|
5,924 |
|
|
5,273 |
|
|
5,371 |
|
5,019 |
|
4,792 |
|
Mortgage banking income |
|
9,633 |
|
|
14,726 |
|
|
23,292 |
|
20,853 |
|
50,733 |
|
Swap termination gains |
|
— |
|
|
4,676 |
|
|
— |
|
— |
|
— |
|
Net gains on sales of securities |
|
— |
|
|
49 |
|
|
764 |
|
— |
|
1,357 |
|
BOLI income |
|
2,153 |
|
|
2,048 |
|
|
1,602 |
|
1,644 |
|
2,072 |
|
Other |
|
3,650 |
|
|
4,821 |
|
|
3,723 |
|
4,104 |
|
7,923 |
| Total noninterest
income |
$ |
37,458 |
|
$ |
47,582 |
|
$ |
50,755 |
$ |
47,610 |
$ |
81,037 |
| Noninterest
expense |
|
|
|
|
|
|
Salaries and employee benefits |
$ |
62,239 |
|
$ |
62,523 |
|
$ |
69,115 |
$ |
70,293 |
$ |
78,696 |
|
Data processing |
|
4,263 |
|
|
5,346 |
|
|
5,277 |
|
5,652 |
|
5,451 |
|
Net occupancy and equipment |
|
11,276 |
|
|
11,177 |
|
|
11,748 |
|
11,374 |
|
12,538 |
|
Other real estate owned |
|
(241 |
) |
|
(60 |
) |
|
168 |
|
104 |
|
41 |
|
Professional fees |
|
3,151 |
|
|
3,209 |
|
|
2,972 |
|
2,674 |
|
2,921 |
|
Advertising and public relations |
|
4,059 |
|
|
2,929 |
|
|
2,922 |
|
3,100 |
|
3,252 |
|
Intangible amortization |
|
1,366 |
|
|
1,424 |
|
|
1,481 |
|
1,539 |
|
1,598 |
|
Communications |
|
2,027 |
|
|
2,088 |
|
|
2,198 |
|
2,291 |
|
2,292 |
|
Merger and conversion related expenses |
|
687 |
|
|
— |
|
|
— |
|
— |
|
— |
|
Restructuring (benefit) charges |
|
(455 |
) |
|
61 |
|
|
— |
|
15 |
|
292 |
|
Debt prepayment penalty |
|
— |
|
|
6,123 |
|
|
— |
|
— |
|
— |
|
Other |
|
5,733 |
|
|
6,295 |
|
|
8,118 |
|
11,735 |
|
8,854 |
| Total noninterest
expense |
$ |
94,105 |
|
$ |
101,115 |
|
$ |
103,999 |
$ |
108,777 |
$ |
115,935 |
Mortgage Banking Income
| (Dollars in thousands) |
Three Months Ended |
| |
Mar 31, 2022 |
Dec 31, 2021 |
Sep 30, 2021 |
Jun 30, 2021 |
Mar 31, 2021 |
|
Gain on sales of loans, net |
$ |
6,047 |
$ |
10,801 |
|
$ |
20,116 |
|
$ |
17,581 |
|
$ |
33,901 |
|
|
Fees, net |
|
3,053 |
|
4,320 |
|
|
3,420 |
|
|
4,519 |
|
|
4,902 |
|
|
Mortgage servicing income (loss), net |
|
533 |
|
(395 |
) |
|
(244 |
) |
|
(1,247 |
) |
|
(1,631 |
) |
|
MSR valuation adjustment |
|
— |
|
— |
|
|
— |
|
|
— |
|
|
13,561 |
|
| Total mortgage banking
income |
$ |
9,633 |
$ |
14,726 |
|
$ |
23,292 |
|
$ |
20,853 |
|
$ |
50,733 |
|
Balance Sheet
| (Dollars in thousands) |
As of |
| |
Mar 31, 2022 |
Dec 31, 2021 |
Sep 30, 2021 |
Jun 30, 2021 |
Mar 31, 2021 |
| Assets |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
1,607,493 |
|
$ |
1,877,965 |
|
$ |
1,476,141 |
|
$ |
1,605,488 |
|
$ |
1,261,916 |
|
|
Securities held to maturity, at amortized cost |
|
487,194 |
|
|
416,357 |
|
|
— |
|
|
— |
|
|
— |
|
|
Securities available for sale, at fair value |
|
2,405,316 |
|
|
2,386,052 |
|
|
2,544,643 |
|
|
2,163,820 |
|
|
1,536,041 |
|
|
Loans held for sale, at fair value |
|
280,464 |
|
|
453,533 |
|
|
452,869 |
|
|
448,959 |
|
|
502,002 |
|
|
Loans: |
|
|
|
|
|
|
Non purchased |
|
9,338,890 |
|
|
9,011,012 |
|
|
8,875,880 |
|
|
8,892,544 |
|
|
9,292,502 |
|
|
Purchased |
|
974,569 |
|
|
1,009,902 |
|
|
1,140,944 |
|
|
1,256,698 |
|
|
1,395,906 |
|
|
Total loans |
|
10,313,459 |
|
|
10,020,914 |
|
|
10,016,824 |
|
|
10,149,242 |
|
|
10,688,408 |
|
|
Allowance for credit losses on loans |
|
(166,468 |
) |
|
(164,171 |
) |
|
(170,038 |
) |
|
(172,354 |
) |
|
(173,106 |
) |
|
Loans, net |
|
10,146,991 |
|
|
9,856,743 |
|
|
9,846,786 |
|
|
9,976,888 |
|
|
10,515,302 |
|
|
Premises and equipment, net |
|
285,344 |
|
|
293,122 |
|
|
294,499 |
|
|
293,203 |
|
|
300,917 |
|
|
Other real estate owned |
|
2,062 |
|
|
2,540 |
|
|
4,705 |
|
|
4,939 |
|
|
5,971 |
|
|
Goodwill |
|
946,291 |
|
|
939,683 |
|
|
939,683 |
|
|
939,683 |
|
|
939,683 |
|
|
Other intangibles |
|
22,731 |
|
|
24,098 |
|
|
25,522 |
|
|
27,003 |
|
|
28,542 |
|
|
Bank-owned life insurance |
|
369,344 |
|
|
287,359 |
|
|
286,088 |
|
|
279,444 |
|
|
233,508 |
|
|
Mortgage servicing rights |
|
91,730 |
|
|
89,018 |
|
|
86,387 |
|
|
84,912 |
|
|
80,263 |
|
|
Other assets |
|
218,797 |
|
|
183,841 |
|
|
198,227 |
|
|
198,047 |
|
|
218,426 |
|
|
Total assets |
$ |
16,863,757 |
|
$ |
16,810,311 |
|
$ |
16,155,550 |
|
$ |
16,022,386 |
|
$ |
15,622,571 |
|
| |
|
|
|
|
|
| Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Noninterest-bearing |
$ |
4,706,256 |
|
$ |
4,718,124 |
|
$ |
4,492,650 |
|
$ |
4,349,135 |
|
$ |
4,135,360 |
|
|
Interest-bearing |
|
9,284,641 |
|
|
9,187,600 |
|
|
8,762,179 |
|
|
8,766,216 |
|
|
8,601,548 |
|
|
Total deposits |
|
13,990,897 |
|
|
13,905,724 |
|
|
13,254,829 |
|
|
13,115,351 |
|
|
12,736,908 |
|
|
Short-term borrowings |
|
111,279 |
|
|
13,947 |
|
|
11,253 |
|
|
14,933 |
|
|
12,154 |
|
|
Long-term debt |
|
435,416 |
|
|
471,209 |
|
|
468,863 |
|
|
469,406 |
|
|
467,660 |
|
|
Other liabilities |
|
188,523 |
|
|
209,578 |
|
|
216,661 |
|
|
218,889 |
|
|
232,148 |
|
|
Total liabilities |
|
14,726,115 |
|
|
14,600,458 |
|
|
13,951,606 |
|
|
13,818,579 |
|
|
13,448,870 |
|
| |
|
|
|
|
|
| Shareholders’
equity: |
|
|
|
|
|
|
Preferred stock |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Common stock |
$ |
296,483 |
|
$ |
296,483 |
|
$ |
296,483 |
|
$ |
296,483 |
|
$ |
296,483 |
|
|
Treasury stock |
|
(114,050 |
) |
|
(118,027 |
) |
|
(118,288 |
) |
|
(97,249 |
) |
|
(98,949 |
) |
|
Additional paid-in capital |
|
1,297,088 |
|
|
1,300,192 |
|
|
1,298,022 |
|
|
1,295,879 |
|
|
1,294,911 |
|
|
Retained earnings |
|
762,690 |
|
|
741,648 |
|
|
717,033 |
|
|
689,444 |
|
|
661,117 |
|
|
Accumulated other comprehensive income (loss) |
|
(104,569 |
) |
|
(10,443 |
) |
|
10,694 |
|
|
19,250 |
|
|
20,139 |
|
| Total shareholders’
equity |
|
2,137,642 |
|
|
2,209,853 |
|
|
2,203,944 |
|
|
2,203,807 |
|
|
2,173,701 |
|
| Total liabilities and
shareholders’ equity |
$ |
16,863,757 |
|
$ |
16,810,311 |
|
$ |
16,155,550 |
|
$ |
16,022,386 |
|
$ |
15,622,571 |
|
Net Interest Income and Net Interest Margin
| (Dollars in thousands) |
Three Months Ended |
| |
March 31, 2022 |
December 31, 2021 |
March 31, 2021 |
| |
AverageBalance |
InterestIncome/Expense |
Yield/ Rate |
AverageBalance |
InterestIncome/Expense |
Yield/ Rate |
AverageBalance |
InterestIncome/Expense |
Yield/ Rate |
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
Non purchased loans |
$ |
9,085,482 |
$ |
84,653 |
3.77 |
% |
$ |
8,806,254 |
$ |
85,362 |
3.85 |
% |
$ |
8,362,793 |
$ |
81,928 |
3.97 |
% |
|
Purchased loans |
|
983,523 |
|
11,729 |
4.82 |
% |
|
1,079,630 |
|
13,823 |
5.09 |
% |
|
1,454,637 |
|
20,457 |
5.69 |
% |
|
PPP loans |
|
39,506 |
|
619 |
6.36 |
% |
|
62,726 |
|
485 |
3.07 |
% |
|
985,561 |
|
10,687 |
4.40 |
% |
| Total loans |
|
10,108,511 |
|
97,001 |
3.88 |
% |
|
9,948,610 |
|
99,670 |
3.98 |
% |
|
10,802,991 |
|
113,072 |
4.24 |
% |
| Loans held for sale |
|
330,442 |
|
2,863 |
3.48 |
% |
|
498,724 |
|
3,652 |
2.93 |
% |
|
406,397 |
|
2,999 |
2.96 |
% |
|
Taxable securities |
|
2,499,822 |
|
8,782 |
1.41 |
% |
|
2,245,249 |
|
7,293 |
1.30 |
% |
|
1,065,779 |
|
4,840 |
1.82 |
% |
|
Tax-exempt securities(1) |
|
438,380 |
|
2,635 |
2.40 |
% |
|
392,700 |
|
2,503 |
2.55 |
% |
|
306,344 |
|
2,284 |
2.98 |
% |
| Total securities |
|
2,938,202 |
|
11,417 |
1.55 |
% |
|
2,637,949 |
|
9,796 |
1.49 |
% |
|
1,372,123 |
|
7,124 |
2.08 |
% |
| Interest-bearing balances with
banks |
|
1,463,991 |
|
664 |
0.18 |
% |
|
1,522,433 |
|
568 |
0.15 |
% |
|
777,166 |
|
183 |
0.10 |
% |
| Total interest-earning
assets |
|
14,841,146 |
|
111,945 |
3.05 |
% |
|
14,607,716 |
|
113,686 |
3.09 |
% |
|
13,358,677 |
|
123,378 |
3.74 |
% |
| Cash and due from banks |
|
206,224 |
|
|
|
201,941 |
|
|
|
205,830 |
|
|
| Intangible assets |
|
965,430 |
|
|
|
964,575 |
|
|
|
969,001 |
|
|
| Other assets |
|
684,464 |
|
|
|
676,408 |
|
|
|
670,183 |
|
|
| Total assets |
$ |
16,697,264 |
|
|
$ |
16,450,640 |
|
|
$ |
15,203,691 |
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand(2) |
$ |
6,636,392 |
$ |
3,647 |
0.22 |
% |
$ |
6,460,178 |
$ |
3,487 |
0.21 |
% |
$ |
5,906,230 |
$ |
3,932 |
0.27 |
% |
|
Savings deposits |
|
1,097,560 |
|
139 |
0.05 |
% |
|
1,045,784 |
|
151 |
0.06 |
% |
|
882,758 |
|
169 |
0.08 |
% |
|
Time deposits |
|
1,374,722 |
|
1,851 |
0.55 |
% |
|
1,434,162 |
|
2,418 |
0.67 |
% |
|
1,655,778 |
|
4,178 |
1.02 |
% |
| Total interest-bearing
deposits |
|
9,108,674 |
|
5,637 |
0.25 |
% |
|
8,940,124 |
|
6,056 |
0.27 |
% |
|
8,444,766 |
|
8,279 |
0.40 |
% |
| Borrowed funds |
|
485,777 |
|
4,925 |
4.08 |
% |
|
434,546 |
|
4,381 |
4.03 |
% |
|
483,907 |
|
3,835 |
3.19 |
% |
| Total interest-bearing
liabilities |
|
9,594,451 |
|
10,562 |
0.44 |
% |
|
9,374,670 |
|
10,437 |
0.44 |
% |
|
8,928,673 |
|
12,114 |
0.55 |
% |
| Noninterest-bearing deposits |
|
4,651,793 |
|
|
|
4,633,885 |
|
|
|
3,862,422 |
|
|
| Other liabilities |
|
201,353 |
|
|
|
210,404 |
|
|
|
240,171 |
|
|
| Shareholders’ equity |
|
2,249,667 |
|
|
|
2,231,681 |
|
|
|
2,172,425 |
|
|
| Total liabilities and
shareholders’ equity |
$ |
16,697,264 |
|
|
$ |
16,450,640 |
|
|
$ |
15,203,691 |
|
|
| Net interest income/ net interest
margin |
|
$ |
101,383 |
2.76 |
% |
|
$ |
103,249 |
2.81 |
% |
|
$ |
111,264 |
3.37 |
% |
| Cost of funding |
|
|
0.30 |
% |
|
|
0.30 |
% |
|
|
0.38 |
% |
| Cost of total deposits |
|
|
0.17 |
% |
|
|
0.18 |
% |
|
|
0.27 |
% |
(1) U.S. Government and some U.S. Government Agency securities
are tax-exempt in the states in which the Company operates.(2)
Interest-bearing demand deposits include interest-bearing
transactional accounts and money market deposits.
Supplemental Margin Information
| (Dollars in thousands) |
Three Months Ended |
| |
Mar 31, 2022 |
Dec 31, 2021 |
Mar 31, 2021 |
| Earning asset
mix: |
|
|
|
|
Loans held for investment, excluding PPP loans |
|
67.84 |
% |
|
67.68 |
% |
|
73.49 |
% |
|
PPP loans |
|
0.27 |
|
|
0.43 |
|
|
7.38 |
|
|
Loans held for sale |
|
2.23 |
|
|
3.41 |
|
|
3.04 |
|
|
Securities |
|
19.80 |
|
|
18.06 |
|
|
10.27 |
|
|
Interest-bearing balances with banks |
|
9.86 |
|
|
10.42 |
|
|
5.82 |
|
|
Total |
|
100.00 |
% |
|
100.00 |
% |
|
100.00 |
% |
| |
|
|
|
| Funding sources
mix: |
|
|
|
|
Noninterest-bearing demand |
|
32.65 |
% |
|
33.08 |
% |
|
30.20 |
% |
|
Interest-bearing demand |
|
46.59 |
|
|
46.11 |
|
|
46.18 |
|
|
Savings |
|
7.70 |
|
|
7.47 |
|
|
6.90 |
|
|
Time deposits |
|
9.65 |
|
|
10.24 |
|
|
12.94 |
|
|
Borrowed funds |
|
3.41 |
|
|
3.10 |
|
|
3.78 |
|
|
Total |
|
100.00 |
% |
|
100.00 |
% |
|
100.00 |
% |
| |
|
|
|
| Net interest income collected
on problem loans |
$ |
434 |
|
$ |
578 |
|
$ |
2,180 |
|
| Total accretion on purchased
loans |
|
1,235 |
|
|
2,187 |
|
|
3,088 |
|
| Total impact on net interest
income |
$ |
1,669 |
|
$ |
2,765 |
|
$ |
5,268 |
|
| Impact on net interest
margin |
|
0.05 |
% |
|
0.08 |
% |
|
0.16 |
% |
| Impact on loan yield |
|
0.07 |
% |
|
0.11 |
% |
|
0.20 |
% |
| |
|
|
|
| Interest income on PPP
loans |
$ |
619 |
|
$ |
485 |
|
$ |
10,687 |
|
| PPP impact on net interest
margin |
|
0.01 |
% |
|
— |
% |
|
0.07 |
% |
| PPP impact on loan yield |
|
0.01 |
% |
|
— |
% |
|
0.01 |
% |
Loan Portfolio
| (Dollars in thousands) |
As of |
| |
Mar 31, 2022 |
Dec 31, 2021 |
Sep 30, 2021 |
Jun 30, 2021 |
Mar 31, 2021 |
| Loan
Portfolio: |
|
|
|
|
|
|
Commercial, financial, agricultural |
$ |
1,437,225 |
$ |
1,364,879 |
$ |
1,368,557 |
$ |
1,387,702 |
$ |
1,388,423 |
|
Lease financing |
|
89,842 |
|
76,125 |
|
79,215 |
|
74,003 |
|
75,256 |
|
Real estate - construction |
|
1,222,052 |
|
1,104,896 |
|
1,091,296 |
|
1,051,359 |
|
955,918 |
|
Real estate - 1-4 family mortgages |
|
2,840,979 |
|
2,724,246 |
|
2,724,743 |
|
2,702,091 |
|
2,686,061 |
|
Real estate - commercial mortgages |
|
4,577,864 |
|
4,549,037 |
|
4,535,730 |
|
4,530,169 |
|
4,549,027 |
|
Installment loans to individuals |
|
137,115 |
|
143,340 |
|
149,821 |
|
156,987 |
|
172,859 |
|
Subtotal |
|
10,305,077 |
|
9,962,523 |
|
9,949,362 |
|
9,902,311 |
|
9,827,544 |
|
PPP |
|
8,382 |
|
58,391 |
|
67,462 |
|
246,931 |
|
860,864 |
|
Total loans |
$ |
10,313,459 |
$ |
10,020,914 |
$ |
10,016,824 |
$ |
10,149,242 |
$ |
10,688,408 |
Credit Quality and Allowance for Credit Losses on
Loans
| (Dollars in thousands) |
As of |
| |
Mar 31, 2022 |
Dec 31, 2021 |
Sep 30, 2021 |
Jun 30, 2021 |
Mar 31, 2021 |
| Nonperforming
Assets: |
|
|
|
|
|
| Non
purchased |
|
|
|
|
|
|
Non purchased nonaccruing loans |
$ |
32,573 |
|
$ |
30,751 |
|
$ |
29,266 |
|
$ |
27,101 |
|
$ |
24,794 |
|
|
Non purchased loans 90 days or more past due |
|
209 |
|
|
1,074 |
|
|
908 |
|
|
800 |
|
|
2,235 |
|
|
Total non purchased nonperforming loans |
|
32,782 |
|
|
31,825 |
|
|
30,174 |
|
|
27,901 |
|
|
27,029 |
|
|
Non purchased other real estate owned |
|
531 |
|
|
951 |
|
|
2,252 |
|
|
1,675 |
|
|
2,292 |
|
|
Total non purchased nonperforming assets |
|
33,313 |
|
|
32,776 |
|
|
32,426 |
|
|
29,576 |
|
|
29,321 |
|
|
Purchased |
|
|
|
|
|
|
Purchased nonaccruing loans |
$ |
19,422 |
|
$ |
18,613 |
|
$ |
26,492 |
|
$ |
27,690 |
|
$ |
28,947 |
|
|
Purchased loans 90 days or more past due |
|
38 |
|
|
367 |
|
|
74 |
|
|
945 |
|
|
129 |
|
|
Total purchased nonperforming loans |
|
19,460 |
|
|
18,980 |
|
|
26,566 |
|
|
28,635 |
|
|
29,076 |
|
|
Purchased other real estate owned |
|
1,531 |
|
|
1,589 |
|
|
2,453 |
|
|
3,264 |
|
|
3,679 |
|
|
Total purchased nonperforming assets |
$ |
20,991 |
|
$ |
20,569 |
|
$ |
29,019 |
|
$ |
31,899 |
|
$ |
32,755 |
|
| Total nonperforming loans |
$ |
52,242 |
|
$ |
50,805 |
|
$ |
56,740 |
|
$ |
56,536 |
|
$ |
56,105 |
|
| Total nonperforming
assets |
$ |
54,304 |
|
$ |
53,345 |
|
$ |
61,445 |
|
$ |
61,475 |
|
$ |
62,076 |
|
| Allowance for credit losses on
loans |
$ |
166,468 |
|
$ |
164,171 |
|
$ |
170,038 |
|
$ |
172,354 |
|
$ |
173,106 |
|
| Net loan charge-offs |
$ |
851 |
|
$ |
5,367 |
|
$ |
1,116 |
|
$ |
752 |
|
$ |
3,038 |
|
| Annualized net loan
charge-offs / average loans |
|
0.03 |
% |
|
0.21 |
% |
|
0.04 |
% |
|
0.03 |
% |
|
0.11 |
% |
| Nonperforming loans / total
loans |
|
0.51 |
|
|
0.51 |
|
|
0.57 |
|
|
0.56 |
|
|
0.52 |
|
| Nonperforming assets / total
assets |
|
0.32 |
|
|
0.32 |
|
|
0.38 |
|
|
0.38 |
|
|
0.40 |
|
| Allowance for credit losses on
loans / total loans |
|
1.61 |
|
|
1.64 |
|
|
1.70 |
|
|
1.70 |
|
|
1.62 |
|
| Allowance for credit losses on
loans / nonperforming loans |
|
318.65 |
|
|
323.14 |
|
|
299.68 |
|
|
304.86 |
|
|
308.54 |
|
| Nonperforming loans / total
loans excluding PPP loans (non-GAAP)(1) |
|
0.51 |
|
|
0.51 |
|
|
0.57 |
|
|
0.57 |
|
|
0.57 |
|
| Nonperforming assets / total
assets excluding PPP loans (non-GAAP)(1) |
|
0.32 |
|
|
0.32 |
|
|
0.38 |
|
|
0.39 |
|
|
0.42 |
|
| Allowance for credit losses on
loans / total loans excluding PPP loans (non-GAAP)(1) |
|
1.62 |
|
|
1.65 |
|
|
1.71 |
|
|
1.74 |
|
|
1.76 |
|
(1)A reconciliation of all non-GAAP financial measures disclosed
in this release from GAAP to non-GAAP is included in the tables at
the end of this release. The information below under the heading
“Non-GAAP Financial Measures” explains why the Company believes the
non-GAAP financial measures in this release provide useful
information and describes the other purposes for which the Company
uses non-GAAP financial measures.
CONFERENCE CALL INFORMATION:A
live audio webcast of a conference call with analysts will be
available beginning at 10:00 AM Eastern Time (9:00 AM Central Time)
on Wednesday, April 27, 2022.
The webcast can be accessed through Renasant’s
investor relations website at www.renasant.com or
https://services.choruscall.com/mediaframe/webcast.html?webcastid=EvhJJJ96.
To access the conference via telephone, dial 1-877-513-1143 in the
United States and request the Renasant Corporation 2022 First
Quarter Earnings Conference Call and Webcast. International
participants should dial 1-412-902-4145 to access the conference
call.
The webcast will be archived on
www.renasant.com beginning one hour after the call and will
remain accessible for one year. Replays can also be accessed via
telephone by dialing 1-877-344-7529 in the United States and
entering conference number 7481861 or by dialing 1-412-317-0088
internationally and entering the same conference number. Telephone
replay access is available until May 11, 2022.
ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant
Bank, a 118-year-old financial services institution. Renasant has
assets of approximately $16.9 billion and operates 196 banking,
lending, mortgage, wealth management and insurance offices in
Mississippi, Tennessee, Alabama, Florida, Georgia, North Carolina
and South Carolina.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS:
This press release may contain, or incorporate
by reference, statements about Renasant Corporation that constitute
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Statements preceded
by, followed by or that otherwise include the words “believes,”
“expects,” “projects,” “anticipates,” “intends,” “estimates,”
“plans,” “potential,” “focus,” “possible,” “may increase,” “may
fluctuate,” “will likely result,” and similar expressions, or
future or conditional verbs such as “will,” “should,” “would” and
“could,” are generally forward-looking in nature and not historical
facts. Forward-looking statements include information about the
Company’s future financial performance, business strategy,
projected plans and objectives and are based on the current beliefs
and expectations of management. The Company’s management believes
these forward-looking statements are reasonable, but they are all
inherently subject to significant business, economic and
competitive risks and uncertainties, many of which are beyond the
Company’s control. In addition, these forward-looking statements
are subject to assumptions with respect to future business
strategies and decisions that are subject to change. Actual results
may differ from those indicated or implied in the forward-looking
statements, and such differences may be material. Prospective
investors are cautioned that any forward-looking statements are not
guarantees of future performance and involve risks and
uncertainties and, accordingly, investors should not place undue
reliance on these forward-looking statements, which speak only as
of the date they are made.
Important factors currently known to management
that could cause our actual results to differ materially from those
in forward-looking statements include the following: (i) the
Company’s ability to efficiently integrate acquisitions into its
operations, retain the customers of these businesses, grow the
acquired operations and realize the cost savings expected from an
acquisition to the extent and in the timeframe anticipated by
management; (ii) the effect of economic conditions and interest
rates on a national, regional or international basis; (iii) timing
and success of the implementation of changes in operations to
achieve enhanced earnings or effect cost savings; (iv) competitive
pressures in the consumer finance, commercial finance, insurance,
financial services, asset management, retail banking, mortgage
lending and auto lending industries; (v) the financial resources
of, and products available from, competitors; (vi) changes in laws
and regulations as well as changes in accounting standards; (vii)
changes in policy by regulatory agencies; (viii) changes in the
securities and foreign exchange markets; (ix) the Company’s
potential growth, including its entrance or expansion into new
markets, and the need for sufficient capital to support that
growth; (x) changes in the quality or composition of the Company’s
loan or investment portfolios, including adverse developments in
borrower industries or in the repayment ability of individual
borrowers; (xi) an insufficient allowance for credit losses as a
result of inaccurate assumptions; (xii) general economic, market or
business conditions, including the impact of inflation; (xiii)
changes in demand for loan products and financial services; (xiv)
concentration of credit exposure; (xv) changes or the lack of
changes in interest rates, yield curves and interest rate spread
relationships; (xvi) increased cybersecurity risk, including
potential network breaches, business disruptions or financial
losses; (xvii) civil unrest, natural disasters, epidemics
(including the re-emergence of the COVID-19 pandemic) and other
catastrophic events in the Company’s geographic area; (xviii) the
impact, extent and timing of technological changes; and (xix) other
circumstances, many of which are beyond management’s control.
Management believes that the assumptions
underlying the Company’s forward-looking statements are reasonable,
but any of the assumptions could prove to be inaccurate. Investors
are urged to carefully consider the risks described in the
Company’s filings with the Securities and Exchange Commission (the
“SEC”) from time to time, including its most recent Annual Report
on Form 10-K and subsequent Quarterly Reports on Form 10-Q, which
are available at www.renasant.com and the SEC’s website at
www.sec.gov.
The Company undertakes no obligation, and
specifically disclaims any obligation, to update or revise
forward-looking statements, whether as a result of new information
or to reflect changed assumptions, the occurrence of unanticipated
events or changes to future operating results over time, except as
required by federal securities laws.
NON-GAAP FINANCIAL MEASURES:
In addition to results presented in accordance
with generally accepted accounting principles in the United States
of America (“GAAP”), this press release and the presentation slides
furnished to the SEC on the same Form 8-K as this release contain
non-GAAP financial measures, including, without limitation, (i)
core loan yield, (ii) core net interest income and margin, (iii)
adjusted pre-provision net revenue, (iv) adjusted net income, (v)
adjusted diluted earnings per share, (vi) tangible book value per
share, (vii) tangible common equity ratio, (vii) certain asset
quality ratios (namely, loans 30-89 past due to total loans,
criticized loans to total loans, nonperforming loans to total
loans, nonperforming assets to total assets, net charge-offs to
average loans and the allowance for credit losses to total loans)
in each case excluding PPP loans, (ix) certain performance ratios
(namely, the ratio of adjusted pre-provision net revenue to average
assets, the return on average assets and on average equity, and the
return on average tangible assets and on average tangible common
equity (including each on an as-adjusted basis)), and (x) the
adjusted efficiency ratio. These non-GAAP financial measures adjust
GAAP financial measures to exclude intangible assets and/or certain
charges (such as, among others, merger and conversion expenses,
COVID-19 related expenses, debt prepayment penalties, swap
termination gains, restructuring charges and asset valuation
adjustments) with respect to which the Company is unable to
accurately predict when these charges will be incurred or, when
incurred, the amount thereof or, with respect to core loan yield
and its asset quality measures, to exclude the Company’s PPP loans.
With respect to COVID-19 related expenses in particular, management
added these expenses as a charge to exclude when calculating
non-GAAP financial measures because the expenses included within
this line item are readily quantifiable and possess the same
characteristics with respect to management’s inability to
accurately predict the timing or amount thereof as the other
charges excluded when calculating non-GAAP financial measures.
Management uses these non-GAAP financial measures when evaluating
capital utilization and adequacy; with respect to the core loan
yield and certain asset quality measures, management excludes PPP
loans, which bear an interest rate fixed by Small Business
Administration (“SBA”) regulations and are both forgivable and
guaranteed by the SBA, to more clearly measure loan yields affected
by competitive factors and potential loss in the Company’s loan
portfolio and the coverage therefor. In addition, the Company
believes that these non-GAAP financial measures facilitate the
making of period-to-period comparisons and are meaningful
indicators of its operating performance, particularly because these
measures are widely used by industry analysts for companies with
merger and acquisition activities. Also, because intangible assets
such as goodwill and the core deposit intangible, charges such as
debt prepayment penalties, restructuring charges and COVID-19
related expenses, and the amount of PPP loans can vary extensively
from company to company and, as to intangible assets, are excluded
from the calculation of a financial institution’s regulatory
capital, the Company believes that the presentation of this
non-GAAP financial information allows readers to more easily
compare the Company’s results to information provided in other
regulatory reports and the results of other companies.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP financial measures are included in the
tables below under the caption “Non-GAAP Reconciliations”.
None of the non-GAAP financial information that
the Company has included in this release or the accompanying
presentation slides are intended to be considered in isolation or
as a substitute for any measure prepared in accordance with GAAP.
Investors should note that, because there are no standardized
definitions for the calculations as well as the results, the
Company’s calculations may not be comparable to similarly titled
measures presented by other companies. Also, there may be limits in
the usefulness of these measures to investors. As a result, the
Company encourages readers to consider its consolidated financial
statements in their entirety and not to rely on any single
financial measure.
Non-GAAP Reconciliations
| (Dollars in thousands, except
per share data) |
Three Months Ended |
| |
Mar 31, 2022 |
Dec 31, 2021 |
Sep 30, 2021 |
Jun 30, 2021 |
Mar 31, 2021 |
| Adjusted
Pre-Provision Net Revenue (“PPNR”) |
|
|
|
|
Net income (GAAP) |
$ |
33,547 |
|
$ |
37,054 |
|
$ |
40,063 |
|
$ |
40,867 |
|
$ |
57,908 |
|
| Income taxes |
|
7,935 |
|
|
11,363 |
|
|
11,185 |
|
|
7,545 |
|
|
16,842 |
|
| Provision for (recovery of)
credit losses (including unfunded commitments) |
|
950 |
|
|
(768 |
) |
|
(1,400 |
) |
|
— |
|
|
— |
|
| Pre-provision net revenue
(non-GAAP) |
$ |
42,432 |
|
$ |
47,649 |
|
$ |
49,848 |
|
$ |
48,412 |
|
$ |
74,750 |
|
| Merger and conversion
expense |
|
687 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Debt prepayment penalties |
|
— |
|
|
6,123 |
|
|
— |
|
|
— |
|
|
— |
|
| Swap termination gains |
|
— |
|
|
(4,676 |
) |
|
— |
|
|
— |
|
|
— |
|
| MSR valuation adjustment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(13,561 |
) |
| Restructuring (benefit)
charges |
|
(455 |
) |
|
61 |
|
|
— |
|
|
15 |
|
|
292 |
|
| COVID-19 related
expenses(1) |
|
— |
|
|
33 |
|
|
323 |
|
|
370 |
|
|
785 |
|
| Adjusted pre-provision net
revenue (non-GAAP) |
$ |
42,664 |
|
$ |
49,190 |
|
$ |
50,171 |
|
$ |
48,797 |
|
$ |
62,266 |
|
| |
|
|
|
|
|
| Adjusted
Net Income and Adjusted Tangible Net Income |
|
|
|
| Net income (GAAP) |
$ |
33,547 |
|
$ |
37,054 |
|
$ |
40,063 |
|
$ |
40,867 |
|
$ |
57,908 |
|
| Amortization of
intangibles |
|
1,366 |
|
|
1,424 |
|
|
1,481 |
|
|
1,539 |
|
|
1,598 |
|
| Tax effect of adjustments
noted above(2) |
|
(303 |
) |
|
(335 |
) |
|
(323 |
) |
|
(333 |
) |
|
(361 |
) |
| Tangible net income
(non-GAAP) |
$ |
34,610 |
|
$ |
38,143 |
|
$ |
41,221 |
|
$ |
42,073 |
|
$ |
59,145 |
|
| |
|
|
|
|
|
| Net income (GAAP) |
$ |
33,547 |
|
$ |
37,054 |
|
$ |
40,063 |
|
$ |
40,867 |
|
$ |
57,908 |
|
| Merger and conversion
expense |
|
687 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Debt prepayment penalties |
|
— |
|
|
6,123 |
|
|
— |
|
|
— |
|
|
— |
|
| Swap termination gain |
|
— |
|
|
(4,676 |
) |
|
— |
|
|
— |
|
|
— |
|
| MSR valuation adjustment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(13,561 |
) |
| Restructuring charges |
|
(455 |
) |
|
61 |
|
|
— |
|
|
15 |
|
|
292 |
|
| COVID-19 related
expenses(1) |
|
— |
|
|
33 |
|
|
323 |
|
|
370 |
|
|
785 |
|
| Tax effect of adjustments
noted above(2) |
|
(51 |
) |
|
(363 |
) |
|
(71 |
) |
|
(83 |
) |
|
2,820 |
|
| Adjusted net income
(non-GAAP) |
$ |
33,728 |
|
$ |
38,232 |
|
$ |
40,315 |
|
$ |
41,169 |
|
$ |
48,244 |
|
| Amortization of
intangibles |
|
1,366 |
|
|
1,424 |
|
|
1,481 |
|
|
1,539 |
|
|
1,598 |
|
| Tax effect of adjustments
noted above(2) |
|
(303 |
) |
|
(335 |
) |
|
(323 |
) |
|
(333 |
) |
|
(361 |
) |
| Adjusted tangible net income
(non-GAAP) |
$ |
34,791 |
|
$ |
39,321 |
|
$ |
41,473 |
|
$ |
42,375 |
|
$ |
49,481 |
|
| |
|
|
|
|
|
| Tangible
Assets and Tangible Shareholders’ Equity |
|
|
|
| Average shareholders’ equity
(GAAP) |
$ |
2,249,667 |
|
$ |
2,231,681 |
|
$ |
2,219,431 |
|
$ |
2,213,743 |
|
$ |
2,172,425 |
|
| Average intangible assets |
|
965,430 |
|
|
964,575 |
|
|
965,960 |
|
|
967,430 |
|
|
969,001 |
|
| Average tangible shareholders’
equity (non-GAAP) |
$ |
1,284,237 |
|
$ |
1,267,106 |
|
$ |
1,253,471 |
|
$ |
1,246,313 |
|
$ |
1,203,424 |
|
| |
|
|
|
|
|
| Average assets (GAAP) |
$ |
16,697,264 |
|
$ |
16,450,640 |
|
$ |
16,130,149 |
|
$ |
15,831,018 |
|
$ |
15,203,691 |
|
| Average intangible assets |
|
965,430 |
|
|
964,575 |
|
|
965,960 |
|
|
967,430 |
|
|
969,001 |
|
| Average tangible assets
(non-GAAP) |
$ |
15,731,834 |
|
$ |
15,486,065 |
|
$ |
15,164,189 |
|
$ |
14,863,588 |
|
$ |
14,234,690 |
|
| |
|
|
|
|
|
| Shareholders’ equity
(GAAP) |
$ |
2,137,642 |
|
$ |
2,209,853 |
|
$ |
2,203,944 |
|
$ |
2,203,807 |
|
$ |
2,173,701 |
|
| Intangible assets |
|
969,022 |
|
|
963,781 |
|
|
965,205 |
|
|
966,686 |
|
|
968,225 |
|
| Tangible shareholders’ equity
(non-GAAP) |
$ |
1,168,620 |
|
$ |
1,246,072 |
|
$ |
1,238,739 |
|
$ |
1,237,121 |
|
$ |
1,205,476 |
|
| |
|
|
|
|
|
| Total assets (GAAP) |
$ |
16,863,757 |
|
$ |
16,810,311 |
|
$ |
16,155,550 |
|
$ |
16,022,386 |
|
$ |
15,622,571 |
|
| Intangible assets |
|
969,022 |
|
|
963,781 |
|
|
965,205 |
|
|
966,686 |
|
|
968,225 |
|
| Total tangible assets
(non-GAAP) |
$ |
15,894,735 |
|
$ |
15,846,530 |
|
$ |
15,190,345 |
|
$ |
15,055,700 |
|
$ |
14,654,346 |
|
| |
|
|
|
|
|
| Adjusted Performance
Ratios |
|
|
|
|
|
| Return on average assets
(GAAP) |
|
0.81 |
% |
|
0.89 |
% |
|
0.99 |
% |
|
1.04 |
% |
|
1.54 |
% |
| Adjusted return on average
assets (non-GAAP) |
|
0.82 |
% |
|
0.92 |
% |
|
0.99 |
% |
|
1.04 |
% |
|
1.29 |
% |
| Return on average tangible
assets (non-GAAP) |
|
0.89 |
% |
|
0.98 |
% |
|
1.08 |
% |
|
1.14 |
% |
|
1.69 |
% |
| Adjusted pre-provision net
revenue to average assets (non-GAAP) |
|
1.04 |
% |
|
1.19 |
% |
|
1.23 |
% |
|
1.24 |
% |
|
1.66 |
% |
| Adjusted return on average
tangible assets (non-GAAP) |
|
0.90 |
% |
|
1.01 |
% |
|
1.09 |
% |
|
1.14 |
% |
|
1.41 |
% |
| Return on average equity
(GAAP) |
|
6.05 |
% |
|
6.59 |
% |
|
7.16 |
% |
|
7.40 |
% |
|
10.81 |
% |
| Adjusted return on average
equity (non-GAAP) |
|
6.08 |
% |
|
6.80 |
% |
|
7.21 |
% |
|
7.46 |
% |
|
9.01 |
% |
| Return on average tangible
equity (non-GAAP) |
|
10.93 |
% |
|
11.94 |
% |
|
13.05 |
% |
|
13.54 |
% |
|
19.93 |
% |
| Adjusted return on average
tangible equity (non-GAAP) |
|
10.99 |
% |
|
12.31 |
% |
|
13.13 |
% |
|
13.64 |
% |
|
16.68 |
% |
| |
|
|
|
|
|
| Adjusted
Diluted Earnings Per Share |
|
|
|
| Average diluted shares
outstanding |
|
56,081,863 |
|
|
56,105,050 |
|
|
56,447,184 |
|
|
56,635,898 |
|
|
56,519,199 |
|
| |
|
|
|
|
|
| Diluted earnings per share
(GAAP) |
$ |
0.60 |
|
$ |
0.66 |
|
$ |
0.71 |
|
$ |
0.72 |
|
$ |
1.02 |
|
| Adjusted diluted earnings per
share (non-GAAP) |
$ |
0.60 |
|
$ |
0.68 |
|
$ |
0.71 |
|
$ |
0.73 |
|
$ |
0.85 |
|
| |
|
|
|
|
|
| Tangible Book Value
Per Share |
|
|
|
|
|
| Shares outstanding |
|
55,880,666 |
|
|
55,756,233 |
|
|
55,747,407 |
|
|
56,350,878 |
|
|
56,294,346 |
|
| |
|
|
|
|
|
| Book value per share
(GAAP) |
$ |
38.25 |
|
$ |
39.63 |
|
$ |
39.53 |
|
$ |
39.11 |
|
$ |
38.61 |
|
| Tangible book value per share
(non-GAAP) |
$ |
20.91 |
|
$ |
22.35 |
|
$ |
22.22 |
|
$ |
21.95 |
|
$ |
21.41 |
|
| |
|
|
|
|
|
| Tangible Common Equity
Ratio |
|
|
|
|
|
| Shareholders' equity to assets
(GAAP) |
|
12.68 |
% |
|
13.15 |
% |
|
13.64 |
% |
|
13.75 |
% |
|
13.91 |
% |
| Tangible common equity ratio
(non-GAAP) |
|
7.35 |
% |
|
7.86 |
% |
|
8.15 |
% |
|
8.22 |
% |
|
8.23 |
% |
| |
|
|
|
|
|
| Adjusted Efficiency
Ratio |
|
|
|
|
|
| Net interest income (FTE)
(GAAP) |
|
101,383 |
|
|
103,249 |
|
|
105,002 |
|
|
111,205 |
|
|
111,264 |
|
| |
|
|
|
|
|
| Total noninterest income
(GAAP) |
|
37,458 |
|
|
47,582 |
|
|
50,755 |
|
|
47,610 |
|
|
81,037 |
|
| MSR valuation adjustment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
13,561 |
|
| Swap termination gains |
|
— |
|
|
4,676 |
|
|
— |
|
|
— |
|
|
— |
|
| Securities gains |
|
— |
|
|
49 |
|
|
764 |
|
|
— |
|
|
1,357 |
|
| Total adjusted noninterest
income (non-GAAP) |
|
37,458 |
|
|
42,857 |
|
|
49,991 |
|
|
47,610 |
|
|
66,119 |
|
| |
|
|
|
|
|
| Noninterest expense
(GAAP) |
|
94,105 |
|
|
101,115 |
|
|
103,999 |
|
|
108,777 |
|
|
115,935 |
|
| Amortization of
intangibles |
|
1,366 |
|
|
1,424 |
|
|
1,481 |
|
|
1,539 |
|
|
1,598 |
|
| Merger and conversion
expense |
|
687 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Debt prepayment penalty |
|
— |
|
|
6,123 |
|
|
— |
|
|
— |
|
|
— |
|
| Restructuring (benefit)
charges |
|
(455 |
) |
|
61 |
|
|
— |
|
|
15 |
|
|
292 |
|
| Recovery of unfunded
commitments |
|
(550 |
) |
|
(300 |
) |
|
(200 |
) |
|
— |
|
|
— |
|
| COVID-19 related
expenses(1) |
|
— |
|
|
33 |
|
|
323 |
|
|
370 |
|
|
785 |
|
| Total adjusted noninterest
expense (non-GAAP) |
|
93,057 |
|
|
93,774 |
|
|
102,395 |
|
|
106,853 |
|
|
113,260 |
|
| |
|
|
|
|
|
| Efficiency ratio (GAAP) |
|
67.78 |
% |
|
67.04 |
% |
|
66.77 |
% |
|
68.49 |
% |
|
60.29 |
% |
| Adjusted efficiency ratio
(non-GAAP) |
|
67.02 |
% |
|
64.18 |
% |
|
66.06 |
% |
|
67.28 |
% |
|
63.85 |
% |
| |
|
|
|
|
|
| Core Net
Interest Income and Core Net Interest Margin |
|
|
|
| Net interest income (FTE)
(GAAP) |
$ |
101,383 |
|
$ |
103,249 |
|
$ |
105,002 |
|
$ |
111,205 |
|
$ |
111,264 |
|
| Net interest income collected
on problem loans |
|
434 |
|
|
577 |
|
|
316 |
|
|
1,339 |
|
|
2,180 |
|
| Accretion recognized on
purchased loans |
|
1,235 |
|
|
2,187 |
|
|
2,871 |
|
|
2,638 |
|
|
3,088 |
|
| Interest income recognized on
PPP loans |
|
619 |
|
|
485 |
|
|
3,503 |
|
|
10,120 |
|
|
10,687 |
|
| Core net interest income (FTE)
(non-GAAP) |
$ |
99,095 |
|
$ |
99,999 |
|
$ |
98,312 |
|
$ |
97,108 |
|
$ |
95,309 |
|
| |
|
|
|
|
|
| Average earning assets
(GAAP) |
$ |
14,841,146 |
|
$ |
14,607,716 |
|
$ |
14,256,421 |
|
$ |
13,989,264 |
|
$ |
13,358,677 |
|
| Average PPP loans |
|
39,506 |
|
|
62,726 |
|
|
126,870 |
|
|
628,462 |
|
|
985,561 |
|
| Average earning assets
excluding PPP loans (non-GAAP) |
$ |
14,801,640 |
|
$ |
14,544,990 |
|
$ |
14,129,551 |
|
$ |
13,360,802 |
|
$ |
12,373,116 |
|
| |
|
|
|
|
|
| Net interest margin
(GAAP) |
|
2.76 |
% |
|
2.81 |
% |
|
2.93 |
% |
|
3.19 |
% |
|
3.37 |
% |
| Core net interest margin
(non-GAAP) |
|
2.71 |
% |
|
2.73 |
% |
|
2.76 |
% |
|
2.92 |
% |
|
3.12 |
% |
| |
|
|
|
|
|
| Core Loan
Yield |
|
|
|
|
|
| Loan interest income (FTE)
(GAAP) |
$ |
97,001 |
|
$ |
99,670 |
|
$ |
103,769 |
|
$ |
110,785 |
|
$ |
113,072 |
|
| Net interest income collected
on problem loans |
|
434 |
|
|
578 |
|
|
316 |
|
|
1,339 |
|
|
2,180 |
|
| Accretion recognized on
purchased loans |
|
1,235 |
|
|
2,187 |
|
|
2,871 |
|
|
2,638 |
|
|
3,088 |
|
| Interest income recognized on
PPP loans |
|
619 |
|
|
485 |
|
|
3,503 |
|
|
10,120 |
|
|
10,687 |
|
| Core loan interest income
(FTE) (non-GAAP) |
$ |
94,713 |
|
$ |
96,420 |
|
$ |
97,079 |
|
$ |
96,688 |
|
$ |
97,117 |
|
| |
|
|
|
|
|
| Average loans (GAAP) |
$ |
10,108,511 |
|
$ |
9,948,610 |
|
$ |
10,017,742 |
|
$ |
10,478,121 |
|
$ |
10,802,991 |
|
| Average PPP loans |
|
39,506 |
|
|
62,726 |
|
|
126,870 |
|
|
628,462 |
|
|
985,561 |
|
| Average loans excluding PPP
loans (non-GAAP) |
$ |
10,069,005 |
|
$ |
9,885,884 |
|
$ |
9,890,872 |
|
$ |
9,849,659 |
|
$ |
9,817,430 |
|
| |
|
|
|
|
|
| Loan yield (GAAP) |
|
3.88 |
% |
|
3.98 |
% |
|
4.11 |
% |
|
4.24 |
% |
|
4.24 |
% |
| Core loan yield
(non-GAAP) |
|
3.82 |
% |
|
3.87 |
% |
|
3.89 |
% |
|
3.94 |
% |
|
4.01 |
% |
| |
|
|
|
|
|
| Adjusted Asset Quality
Ratios |
|
|
|
|
|
| Total loans (GAAP) |
$ |
10,313,459 |
|
$ |
10,020,914 |
|
$ |
10,016,824 |
|
$ |
10,149,242 |
|
$ |
10,688,408 |
|
| PPP loans |
|
8,382 |
|
|
58,391 |
|
|
67,462 |
|
|
246,931 |
|
|
860,864 |
|
| Total loans excluding PPP
loans (non-GAAP) |
$ |
10,305,077 |
|
$ |
9,962,523 |
|
$ |
9,949,362 |
|
$ |
9,902,311 |
|
$ |
9,827,544 |
|
| |
|
|
|
|
|
| Loans 30-89 days past due |
$ |
30,617 |
|
$ |
27,604 |
|
$ |
14,806 |
|
$ |
15,077 |
|
$ |
21,801 |
|
| Loans 30-89 days past due /
total loans (GAAP) |
|
0.30 |
% |
|
0.28 |
% |
|
0.15 |
% |
|
0.15 |
% |
|
0.20 |
% |
| Loans 30-89 days past due /
total loans excluding PPP loans (non-GAAP) |
|
0.30 |
% |
|
0.28 |
% |
|
0.15 |
% |
|
0.15 |
% |
|
0.22 |
% |
| |
|
|
|
|
|
| Classified loans |
$ |
178,015 |
|
$ |
160,790 |
|
$ |
187,223 |
|
$ |
206,724 |
|
$ |
229,243 |
|
| Special Mention loans |
|
76,949 |
|
|
115,496 |
|
|
138,497 |
|
|
125,507 |
|
|
120,320 |
|
| Criticized loans(3) |
$ |
254,964 |
|
$ |
276,286 |
|
$ |
325,720 |
|
$ |
332,231 |
|
$ |
349,563 |
|
| Criticized loans / total loans
(GAAP) |
|
2.47 |
% |
|
2.76 |
% |
|
3.25 |
% |
|
3.27 |
% |
|
3.27 |
% |
| Criticized loans / total loans
excluding PPP loans (non-GAAP) |
|
2.47 |
% |
|
2.77 |
% |
|
3.27 |
% |
|
3.36 |
% |
|
3.56 |
% |
| |
|
|
|
|
|
| Nonperforming loans |
$ |
52,242 |
|
$ |
50,805 |
|
$ |
56,740 |
|
$ |
56,536 |
|
$ |
56,105 |
|
| Nonperforming loans / total
loans (GAAP) |
|
0.51 |
% |
|
0.51 |
% |
|
0.57 |
% |
|
0.56 |
% |
|
0.52 |
% |
| Nonperforming loans / total
loans excluding PPP loans (non-GAAP) |
|
0.51 |
% |
|
0.51 |
% |
|
0.57 |
% |
|
0.57 |
% |
|
0.57 |
% |
| |
|
|
|
|
|
| Allowance for credit losses on
loans |
$ |
166,468 |
|
$ |
164,171 |
|
$ |
170,038 |
|
$ |
172,354 |
|
$ |
173,106 |
|
| ACL / total loans (GAAP) |
|
1.61 |
% |
|
1.64 |
% |
|
1.70 |
% |
|
1.70 |
% |
|
1.62 |
% |
| ACL / total loans excluding
PPP loans (non-GAAP) |
|
1.62 |
% |
|
1.65 |
% |
|
1.71 |
% |
|
1.74 |
% |
|
1.76 |
% |
| |
|
|
|
|
|
| |
|
|
|
|
|
| Average loans (GAAP) |
$ |
10,108,511 |
|
$ |
9,948,610 |
|
$ |
10,017,742 |
|
$ |
10,478,121 |
|
$ |
10,802,991 |
|
| Average PPP loans |
|
39,506 |
|
|
62,726 |
|
|
126,870 |
|
|
628,462 |
|
|
985,561 |
|
| Average loans excluding PPP
loans (non-GAAP) |
$ |
10,069,005 |
|
$ |
9,885,884 |
|
$ |
9,890,872 |
|
$ |
9,849,659 |
|
$ |
9,817,430 |
|
| |
|
|
|
|
|
| Net charge-offs |
$ |
851 |
|
$ |
5,367 |
|
$ |
1,116 |
|
$ |
752 |
|
$ |
3,038 |
|
| Annualized net charge-offs /
average loans (GAAP) |
|
0.03 |
% |
|
0.21 |
% |
|
0.04 |
% |
|
0.03 |
% |
|
0.11 |
% |
| Annualized net charge-offs /
average loans excluding PPP loans (non-GAAP) |
|
0.03 |
% |
|
0.22 |
% |
|
0.04 |
% |
|
0.03 |
% |
|
0.13 |
% |
| |
|
|
|
|
|
| Total assets (GAAP) |
$ |
16,863,757 |
|
$ |
16,810,311 |
|
$ |
16,155,550 |
|
$ |
16,022,386 |
|
$ |
15,622,571 |
|
| PPP loans |
|
8,382 |
|
|
58,391 |
|
|
67,462 |
|
|
246,931 |
|
|
860,864 |
|
| Total assets excluding PPP
loans (non-GAAP) |
$ |
16,855,375 |
|
$ |
16,751,920 |
|
$ |
16,088,088 |
|
$ |
15,775,455 |
|
$ |
14,761,707 |
|
| |
|
|
|
|
|
| Nonperforming assets |
$ |
54,304 |
|
$ |
53,345 |
|
$ |
61,445 |
|
$ |
61,475 |
|
$ |
62,076 |
|
| Nonperforming assets / total
assets (GAAP) |
|
0.32 |
% |
|
0.32 |
% |
|
0.38 |
% |
|
0.38 |
% |
|
0.40 |
% |
| Nonperforming assets / total
assets excluding PPP loans (non-GAAP) |
|
0.32 |
% |
|
0.32 |
% |
|
0.38 |
% |
|
0.39 |
% |
|
0.42 |
% |
(1) Primarily consists of employee overtime and
employee benefit accruals directly related to the response to the
COVID-19 pandemic and federal legislation enacted to address the
pandemic, such as the CARES Act, and expenses associated with
supplying branches with protective equipment and sanitation
supplies (such as floor markings and cautionary signage for
branches, face coverings and hand sanitizer) as well as more
frequent and rigorous branch cleaning.(2) Tax effect is calculated
based on the respective periods’ effective tax rate excluding the
impact of discrete items.(3) Criticized loans include loans in risk
rating classifications of classified and special mention.
| Contacts: |
For Media: |
|
For Financials: |
| |
John S. Oxford |
|
James C. Mabry IV |
| |
Senior Vice President |
|
Executive Vice President |
| |
Director of Marketing |
|
Chief Financial Officer |
| |
(662) 680-1219 |
|
(662) 680-1281 |
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